Nolan, Joseph. "Adam Smiths Free Market Capitalism; Economics, Then and Now." Vital Speeches of the Day 61.6 (1995): 183-87. Academic Search Premier. Web. 24 Oct. 2010.
Adam Smith and the Free Market
founding father of capitalism and free market
wrote the Wealth of Nations published in 1776
self-regulated market
supply and demand-prices are self-adjusting which leads to maximizing the good's value
competition-supplies goods that consumers want at quantities desired and at prices consumers are willing to pay
people pursue actions which make them better off. The combined actions of many people in the market doing this regulate the market.
"It is not from the benevolence of the butcher, the brewer or the baker that we expect our dinner, but from their regard to their own interest . . . Every individual is continually exerting himself to find out the most advantageous employment for whatever capital he can command . . . By directing that industry in such a manner as its produce may be of the greatest value, he intends only his own gain, and he is, in this as in many other cases, led by an invisible hand to promote an end which was no part of his intention."-Adam Smith
division and specialization of labor
develops and refines skills
increases labor productivity
limited government intervention
government has 3 main duties (smiths ideas stemmed from the negative reaction smith had to the british gov.)
national defense
administration of justice (protection of rights)
the creation of public works
free trade advantages
against trade protectionism (i.e. tariffs, quotas, embargoes, subsidies etc.)
Adam Smith and the Free Market today
realizes the free market isnt always efficient or perfect
not strongly against government intervention
government actions GENERALLY seek for a general public welfare
strongly against government intervention which harms competition and free trade
This article will help me talk about communism, its positives and negatives.
Communism-replace public property with public ownership of natural resources and at least the major forms of industry
"founding father" karl marx
fully realized communism-no government or class structure
socialism-almost the first phase of communism
government control of public services (health car, electricity, water, etc.)
one political party
tolerated no opposition
inefficient markets play a large role in the collapse of communist countries
1.http://web.ebscohost.com/ehost/detail?vid=15&hid=106&sid=31e64545-f5ce-44a7-affe-adb6c00fbfa4%40sessionmgr104&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db=aph&AN=9501205577
Nolan, Joseph. "Adam Smiths Free Market Capitalism; Economics, Then and Now." Vital Speeches of the Day 61.6 (1995): 183-87. Academic Search Premier. Web. 24 Oct. 2010.
Adam Smith and the Free Market
2. http://www.britannica.com/EBchecked/topic/129104/communism
Ball, Terence, and Richard Dagger. "Communism (ideology)." Encyclopedia Britannica. Encyclopedia - Britannica Online Encyclopedia. 25 Nov. 2008. Web. 30 Oct. 2010. <http://www.britannica.com/EBchecked/topic/129104/communism>.
This article will help me talk about communism, its positives and negatives.
Communism-replace public property with public ownership of natural resources and at least the major forms of industry
3. http://www.investopedia.com/articles/02/101502.asp
Heakal, Reem. "What Is Market Efficiency?" Investopedia.com. Web. 30 Oct. 2010. <http://www.investopedia.com/articles/02/101502.asp>.
efficient market hypothesis
Strongly Efficient markets
- stock prices and market values are unbiased relations of the actual value of the investment (very little under valued stocks)
semi-strong- past stock prices are used as well as financial information of each stock. (50/50 under valued stocks)
Weak efficiency markets4. "Karl Marx." Columbia Electronic Encyclopedia 6th Edition (2010): 1. Academic Search Premier. Web. 31 Oct, 2010.
Karl Marx bibliography. The article will help with my communism discussion
http://web.ebscohost.com/ehost/detail?vid=6&hid=10&sid=1a1106bc-0901-45bb-96dc-c60dcb36324c%40sessionmgr12&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db=aph&AN=9769795
5. Tyler, Gus. "Marx' Manifesto Revised." New Leader 81.11 (1998): 11-14. Academic Search Premier. Web. 31 Oct. 2010.
This article talks about Marx' Communist Manifesto and critiques it in the world today.
http://web.ebscohost.com/ehost/detail?vid=9&hid=10&sid=1a1106bc-0901-45bb-96dc-c60dcb36324c%40sessionmgr12&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db=aph&AN=10311463